Leesburg May Pass 2% Tax Increase

LEESBURG — City commissioners Monday are expected to approve a tentative 2 percent tax rate increase that would raise next year's millage from 3.96 to 4.05.

A mill is $1 in taxes for every $1,000 of taxable property value. If the tentative millage is adopted and approved by the city commission after public hearings are held in September, the owner of a $65,000 home with a $25,000 homestead exemption would pay $162 in taxes. The same homeowner paid $158.40 this year.

The new fiscal year begins Oct. 1.

Commissioners are scheduled to discuss the tentative millage during a commission meeting Monday. By law, the commission has until the end of the month to supply the preliminary rate to the county tax appraiser's office.

City Manager Rex Taylor said Friday that a preliminary general budget of $6.33 million -- up 6 percent from this year's $5.95 million budget -- will be discussed during workshops scheduled Tuesday and Wednesday at 4 p.m. in the city commission room at city hall.

City Finance Director Jim Schuster said in a memo that taxes will be affected by increased property values that have been raised 6.2 percent by the county appraiser's office -- from $298 million to $316 million.

Shuster said the proposed tentative millage is insufficient to balance the budget and that $251,000 needs to be appropriated from ''prior balances.''

The figure could be reduced because of an anticipated $104,350 surplus from this year's budget, cutting the deficit to a net $147,540.